Treasure Valley Defaults Drop for Second Consecutive Month!
4,387 Local Distressed Property Listings!
Treasure Valley mortgage defaults reached their all time peak in March 2010 with 949 notices filed. Since then defaults have shown two straight months of decline with 744 notices filed in April and 584 files last month in May.
One major reason for the sharp drop in filings is due to the governments new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is a short sale program primarily designed for homeowners who are unable to stay in their home even with a loan modification under the Home Affordable Modification Program (HAMP). Under the program that started in April, all loans in default must first be evaluated to see if they qualify to participate in the short sale program. It will take some time to evaluate all of these loans for short sale eligibility. For loans that don't qualify for HAFA and those that are unable to successfully complete a short sale, the foreclosure process can be started with the filing of the notice of default. So IDP expects to see another two months of reduced default filings before they start to pickup again.
Ada & Canyon County Notice of Default Statistics
Ada County Down 20% fro April with 354 Notices of Default Filed
Ada County Foreclosure Starts were down 20% with 354 starts files in May. This is the second month of decline for Ada county after seeing an all time record of 597 filings recorded in March.
Comparing Ada County numbers year over year through May, a total of 2226 notices have been filed so far in 2010 which is up 387% through May of 2007 when 457 defaults were filed. Up 98% from 2008 when 1126 homes entered into default, and up 5% through May of 2009 when 2118 filings were recorded.
Canyon County Foreclosures Down 23% from April with 230 Filings!
May Foreclosure Starts in Canyon County are down 23% from April with 230 filings. May marks the second consecutive month of decline in notices since March which was just 13 filings short of the all time record of 352 filings that was reached in January.
Comparing Canyon County numbers year over year through May, a total of 1507 notices have been filed so far in 2010 this is up 381% through May of 2007 when 313 defaults were filed. Up 110% through May of 2008 when 717 homes entered into default, and up 06% through April of 2009 when 1424 filings were recorded.
As the graph illustrates below April and May have brought two consecutive months of decline since the all time record set in March.
2.624 Short Sale Listings in the IMLS!
Many homeowners continue to list their underwater properties! Once few and far between, Short Sales have become the hottest topic as a solution to the foreclosure epidemic and they can provide agents a profitable real estate business even in a down real estate market.
Short Sales listings are holding steady with 2,624 active listings in the IMLS. This is down just slightly from April when 2,660 homes were listed as a short sale.
REO Listings up 1.68% with 1.763 REO's Listed
Since the beginning of 2010 banks have been taking more and more distressed property back. With four consecutive months of increase bringing us to a peak of 1,734 REO listings in the IMLS. Last month saw yet another small increase of 1.68% in REO listings with 1763 active listings.
Lender REO (Real Estate Owned) properties are those that the lender obtains title to after a foreclosure auction when no one else buys the property at auction. When a REO property is then listed by the lender, it is usually sold at a discount off of market value. These discounted properties are similar to short sales by having the effect of depressing overall market prices.
Distressed Listings Down Only .16% in May
It is now common knowledge that distressed property listings are at an all time high. With a record number of loans entering into default and countless people upside down on their mortgage short sales and reo listings will dominate the market for years to come. Distressed properties have reached a plateau and are hanging around a total of 4,390 listings. No real recovery can happen in the real estate industry until this record number of distressed properties can be cleared out. With 2,624 short sale listings in May and 1,763 REO’s listed we now have a total of 4,387 distressed properties listed in the IMLS which is down slightly 0.16% from the 4.394 listings in April.
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